Agant to Introduce GBPA: A Revolutionary Stablecoin Tied to the Pound Sterling in the UK’s Digital Asset Realm
Agant is gearing up to launch GBPA, a stablecoin linked to the pound sterling, in a groundbreaking move for the UK’s digital asset industry. The aim is to meet the growing demand for compliant digital currency solutions, especially with over 6 million individuals and 32% of UK institutions already involved in digital assets.
Meeting Market Demands through Regulatory Compliance
The introduction of GBPA addresses a critical market void: the absence of a secure, regulated GBP settlement asset in the digital domain. Agant highlights the unnecessary foreign exchange risks faced by participants in the UK’s digital asset sector due to the lack of a native GBP stablecoin. According to an Agant spokesperson, the inspiration for GBPA arose from the team’s firsthand need to transact and store value on-chain using the pound sterling. Unlike competitors like USDT, Agant prioritizes compliance, maintaining active engagement with UK regulators, including the Financial Conduct Authority (FCA) and the Bank of England.
Ensuring Stability through Strong Backing and Liquidity Mechanisms
To address concerns about stablecoin volatility, GBPA will be backed 1:1 with a combination of cash and high-quality liquid assets (HQLA), ensuring adherence to stringent regulatory norms. Client funds will be kept securely in segregated accounts, with Agant collaborating with top-tier liquidity providers and market makers to uphold sufficient market liquidity and stability.
Strategic Partnerships and Interoperability
Agant’s growth strategy involves forging alliances with key blockchain networks like Solana, Avalanche, and Ethereum. The company has successfully partnered with renowned industry entities such as Archax, Copper, and Fireblocks. GBPA’s infrastructure emphasizes technical innovation, with LayerZero supporting cross-chain functionality to enable smooth operations across various blockchain ecosystems. Additionally, Agant’s proprietary FasterStables technology streamlines token issuance and redemption processes.
Transforming Remittances and Cross-Border Transactions
GBPA has the potential to revolutionize the UK’s remittance sector, currently burdened with fees ranging from 5-7% on over £16 billion in bilateral flows, resulting in approximately £1.2 billion in intermediary charges. Conventional transfer methods can take up to five business days, incurring significant costs. Agant asserts that blockchain technology drastically reduces the costs linked to money movement and custody to nearly zero.
Outlook for 2024 and Beyond: Initiatives and Future Prospects
By 2024, Agant has achieved significant milestones, including the deployment of a consumer Minimum Viable Product (MVP) integrated with automated KYC procedures and Open Banking. The company is also progressing towards cross-chain GBPA deployment via LayerZero and working towards ISO 27001 compliance. Future plans encompass public launch expansions, DeFi institutional tools, partnerships for on-chain foreign exchange, remittance solutions, and developer API resources.
Revenue Model in Harmony with Regulatory Guidelines
Agant’s revenue model incorporates transaction fees and returns from investments in short-term UK gilts and qualifying HQLA, ensuring returns that meet or exceed the Bank of England’s base rate. The company’s dedication to regulatory compliance is viewed as vital for GBPA’s sustainable success in the evolvement of the digital economy.
Conclusion: A Decisive Step in the Future of UK Finance
As the UK strives to lead in financial innovation, the launch of GBPA signifies a significant leap in connecting traditional finance with digital assets. This stablecoin has the potential to reshape the UK’s engagement with blockchain technology and digital transactions, laying the groundwork for a more cohesive and efficient financial landscape.
